The net income for the current year is 600,000. Depreciation recorded on store equipment for the year amounted 24000.

Net cash flow from operating activities, $626,400

The net income reported on the income statement for the current year was $600,000. Depreciation recorded on store equipment for the year amounted to $24,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

End of Year

Beginning of Year

Cash

$62,400

$57,600

Accounts receivable (net)

45,600

42,000

Merchandise inventory

60,000

66,000

Prepaid expenses

7,200

5,400

Accounts payable (merchandise creditors)

60,000

54,000 Wages payable

31,800

36,000

a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.